Business of Cannabis: Arizona Moves Ahead With Intoxicating Hemp Ban, Retailers Now Face $20k Fines Per Product

SOURCE: Business of Cannabis

EXCERPT:

In March 2025, Arizona Attorney General Kris Mayes declared that hemp-derived products with intoxicating levels of THC should be treated the same as cannabis under state law, meaning they should only be sold through licensed dispensaries.

He gave Arizona retailers until April 24 to remove products from shelves, or potentially faces fines of up to $20,000 per item or criminal prosecution.

In response, the Hemp Industry Trade Association of Arizona (HITA), which represents dozens of growers, manufacturers, and sellers of hemp products, filed a lawsuit aiming to block the enforcement via a temporary restraining order.

HITA, represented by several prominent cannabis lawyers, argued that under the 2018 US Farm Bill and Arizona’s own rules, intoxicating hemp-derived products, like drinks and vape cartridges infused with Delta-8 or Delta-9 THC, are legal to sell without a cannabis license.

The group’s lawsuit called for the courts to declare these ‘consumable hemp products’ legal and to block prosecutors from enforcing restrictions.

In a brief virtual hearing on Thursday, April 24, Maricopa County Superior Court Judge Randall Warner denied the request.

As such, the case will now be played out in a full hearing on May 09, where Judge Warner says he will explain his reasoning behind the denial.

In a statement sent to Business of Cannabis today, HITA remained optimistic, stating that: “This ruling is not a setback but a procedural step forward. The Court chose to give every stakeholder a full and fair opportunity to be heard and, in doing so, granted us an expedited hearing on our preliminary-injunction motion for May 9, 2025.

“We thank Judge Warner for the Court’s prompt attention and for setting a fast-track schedule that recognizes the urgency facing Arizona’s hemp community. We respect the Court’s decision and remain confident that our position will prevail if given the opportunity to present complete evidence and legal argument.”

Meanwhile, Attorney General Mayes, who initiated the crackdown, welcomed the decision, stating: “Arizona law is clear: intoxicating THC products must be sold through licensed dispensaries, not convenience stores or smoke shops.”

Similarly, licensed cannabis dispensary owners, who are under threat from the cheaper, unregulated intoxicating-hemp market, also supported the decision